Company debt decrees on the rise

The number of debt decrees registered against Scottish companies rose by 21 percent during the first quarter of the year, according to figures released today by Registry Trust.

A decree is incontrovertible proof that debt has not been managed.

The non-profit organisation, which collects decree and judgement information from jurisdictions across the British Isles and Ireland, and Scotland where it collects information on small claims and summary causes, and ordinary cause decrees, found that over the same quarter the average value of a company decree also rose by five percent.

By contrast, decrees against businesses which were not incorporated moved strongly in the opposite direction. The number of decrees was down 41 percent and the average value down 29 percent.

“The contrasting experience of businesses is a cause for concern because there isno clear and immediate explanation,” said Registry Trust chairman Malcolm Hurlston CBE. “Certainly, a close eye is needed on the wellbeing of the corporate sector.”

In Q1 2017 Registry Trust received 8,542 requests to search the register for Scotland online at www.trustonline.org.uk.

Through TrustOnline anyone in Scotland can search for decrees and similar information registered against businesses and consumers in any jurisdiction across the British Isles and Ireland.

“It is a unique benefit for firms to be able to check the debt record of any person or business with which they may be transacting,” said Mr Hurlston. “Negative information would certainly make me think twice.”